The Jakarta Post, Jakarta
The Japan Petroleum Exploration Co. (Japex) and Mitsubishi Corp. will invest US$400 million to boost production from the Kangean oil and gas field in East Java after the Japanese firms bought 50 percent of the block.
Japex president director Yuji Tanahashi said Thursday that the consortium had bought a 50 percent stake in the block from PT Energi Mega Persada (EMP) through an agreement signed last month.
The two companies bought the stake for $360 million, with the stake being split equally between them.
Located in the eastern part of Madura island, the Kangean block, which mostly produces gas, is currently pumping out some 10,000 barrels of oil equivalent a day, with all of the production supplying the domestic market.
According to Yuji, the consortium expects the new investment to boost the block's production to 60,000 barrels of oil equivalent per day within three years.
"We plan to revitalize the production of crude oil and natural gas, and are prioritizing production for the domestic market," he said.
He added that the consortium planned to increase its investment in the future.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.